Addison, Texas-based Concentra Operating Corporation reported it has completed the previously reported sale of its workers’ compensation managed care services business units to Maryland-based Coventry Health Care Inc. for $387.5 million.
The transaction resulted in net after-tax proceeds to Concentra of approximately $270 million, of which approximately $260 million will be used to prepay of a portion of its senior term indebtedness.
In the transaction, Concentra divested its Workers’ Compensation Network Services business, comprising its provider bill review and repricing services and FOCUS preferred provider organization, Field Case Management, Telephonic Case Management, Independent Medical Exams, and Pharmacy Benefit Management (First Script Network Services) businesses.
These businesses generated a total of approximately $324 million of revenue in 2006. Concentra retained its health centers as well as its cost containment, claims review, claims repricing services and network management services provided to group health and auto insurers. Revenue from these retained businesses totaled approximately $975 million in 2006.
Concentra Operating Corporation, a subsidiary of Concentra Inc., provides the occupational, auto and group healthcare markets, Concentra with a series of integrated services that include employment-related injury and occupational health care, urgent care services, in-network and out-of-network medical claims review and repricing, access to preferred provider organizations, case management and other cost containment services.